Soggy Noodles on Wall Street’s menu again
Noodles have been giving investors an additional box of indigestion.
Shares of Noodles Restaurants NDLS wilted 19.3% to $16. 70 Wednesday after the fast-casual grill sequence cold Wall Street with the ultimate lousy quarter.
Colorado-based Noodles pronounced income climbed 18% to $105.8 million for the initial quarter, but which was mostly due to brand new store openings. Same-store sales rose only 0.8% for association restaurants and 1.4% for franchises. Net income, meanwhile, fell to $900,000 from $1.4 million.
CEO Kevin Reddy conceded the company’s sales challenges, generally density in Colorado, civil Washington, D.C., and Austin.
“We have been assured which we assimilate the opportunities in these markets and have been aggressively operative on returning them to the success which we have been observant the change of the country,” Reddy said.
Still, for the full mercantile year, Noodles expects only low singular number same-store sales and prosaic earnings.
Noodles has right away wilted investors’ hopes in 3 of the past 4 quarters. Shares sank 24% Feb. nineteen after the company’s unsatisfactory fourth-quarter gain report. And they fell 20% on Aug. 13, 2014, baked by lower-than-expected second entertain results.
Barclay’s batch researcher Jeffrey Bernstein stays unimpressed, observant investors should “justifiably subject Noodles’ ability” to lapse long-term gain growth. His cost target: $16 a share.
Shares appearance at about $49.75 inside of months after the company’s Jul 2013 IPO.
Follow Strauss on Twitter @gstrauss_